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Market review: March 15, 2016

Fang submitted 2016-03-15 15:31:05

Market review:

China stocks draw an arc-sharped smile, and funds currently favor more big-cap than cyclical junk stocks, as national team propping up financial sector to maintain stability as People’s Congress ending, turning point of market sentiment. 

Research Notes:

Money outflowed form Chemical Fiber, Coal Mining and Developing Zone sectors the most. Heilongjiang Guozhong Water Processing(600187.sh) rallied to limit-up on hope of more Gov directed investment. 

The almost limit-down slump of iron ore futures in DCE, with other metals and raw materials, indicated that the theme‘s changing for both equity and commodity markets. Once more we shall warn those bets on cyclical assets that the rally on People’s Congress meeting could not last beyond its end. It’s probably better strategy to seek anti-cyclical safe havens than gambling on the coming back of a 2009 style infrastructure driven boom. So by safe haven, can take banks as an example

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